This section provides counts and details of the flow of Australian businesses into and out of the Australian economy, including the survival rates of entries. Data were sourced from the ABS Business Register (ABR) and only include businesses which actively traded in goods and services during the reference period, rather than all entities registered on the ABR. Businesses classified to ANZSIC Division M, Government administration and defence are excluded from the statistics. In addition, entities classified to the general government institutional sector are excluded for most industries. This exclusion particularly affects data for the Education, and Health and community services industries, where details relate only to private sector businesses. The term 'total selected industries' is used to refer to the aggregate of the industries included in this section.

Table 15.7 shows the number of actively trading businesses in Australia at the beginning and end of 2006-07. The number of businesses operating in the total selected industries at June 2007 was 2,011,770. This compares with 1,963,907 businesses operating at the beginning of 2006-07 (a growth of 2% during the period). The Property and business services industry had the greatest number of businesses at June 2007 (507,508 or 25% of the total), followed by Construction (16%), Retail trade and Agriculture, forestry and fishing (both 11%). There was a marked decline (4%) in businesses within the Electricity, gas and water supply industry during the period under review.

15.7 BUSINESSES BY INDUSTRY DIVISION - 2006-07

Operating at start of financial year

Entries(a)

Exists(b)

Operating at end of financial year

Change

Percentage change

no.

no.

no.

no.

no.

%

Agriculture, forestry and fishing

214 879

24 532

24 616

214 795

-84

-

Mining

6 997

1 251

1 043

7 205

208

3.0

Manufacturing

106 778

13 918

14 131

106 565

-213

-0.2

Electricity, gas and water supply

2 057

273

362

1 968

-89

-4.3

Construction

308 405

62 035

48 036

322 404

13 999

4.5

Wholesale trade

84 633

13 115

12 350

85 398

765

0.9

Retail trade

217 684

35 876

34 252

219 308

1 624

0.8

Accommodation, cafes and restaurants

55 666

10 712

9 700

56 678

1 012

1.8

Transport and storage

115 642

19 292

17 611

117 323

1 681

1.5

Communication services

23 191

5 419

4 612

23 998

807

3.5

Finance and insurance

129 646

27 188

20 247

136 587

6 941

5.4

Property and business services

492 453

86 097

71 042

507 508

15 055

3.1

Education

15 287

3 713

2 735

16 265

978

6.4

Health and community services

89 228

11 702

8 612

92 318

3 090

3.5

Cultural and recreational services

45 537

8 800

7 529

46 808

1 271

2.8

Personal and other services

55 824

10 766

9 948

56 642

818

1.5

Total selected industries

1 963 907

334 689

286 826

2 011 770

47 863

2.4

- nil or rounded to zero (including null cells)

(a) Businesses which were actively trading on the business register at June 2007 but were either not included or not actively trading at June 2006.

(b) Businesses which were actively trading on the business register at June 2006 but were either not included or not actively trading at June 2007.

Graph 15.8 shows that in 2006-07, there were three industries (Agriculture, Forestry and Fishing, Manufacturing and Electricity, Gas and Water Supply) where business exit rates exceeded business entry rates. This was the first year, since the business counts records commenced in 2003, that the Agricultural Industry recorded more exits than entries. The remaining thirteen industries reported more entrants. Of particular note were the Education, Finance and insurance and Construction industries. Between June 2003 and June 2007, the Education industry grew from 15,172 businesses to 16,265 businesses, an increase of 1,093 (7%). In the same period, the Finance and insurance industry grew by 6,588 businesses (5%).

15.8 business entry and exit rates(a) - 2006-07

Graph 15.9 shows survival rates at June 2006 and June 2007 for business entries during 2003-04. Survival rates at June 2006 and June 2007 were highest for businesses in Health and community services and Agriculture, forestry and fishing (71% and 65% respectively). Their survival rates at June 2006 and June 2007 are notably higher than the total selected industries average (65% and 58% respectively). Survival rates at June 2006 and June 2007 were lowest for Communication services (53% and 45%), Education (56% and 49%), and Personal and other services (58% and 51%).

15.9 2003-04 business entries, survival rate(a) - June 2006 and June 2007

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